The International Monetary Fund (IMF) has disclosed that Nigeria omitted public expenditure equivalent to about two per cent of its Gross Domestic Product (GDP) from recent official budgets, creating a mismatch between the country’s reported fiscal deficit and its actual borrowing requirements.
The IMF’s Resident Representative in Nigeria, Christian Ebeke, made this known while speaking in Lagos on Wednesday, July 1, 2026.
Ebeke said the omission meant the government’s financing needs were higher than reflected in official budget figures because some capital projects were executed outside the approved budget framework.
He explained that the unreported spending, largely tied to off-budget government projects, has distorted assessments of Nigeria’s fiscal position and the scale of its public investment.
Ebeke said the IMF estimated that expenditure amounting to about two per cent of GDP should have been captured in the country’s fiscal accounts.
“So far, we think that there are about two per cent of GDP of expenditure that were not reported and should be recorded so that this statistical discrepancy will disappear,” Ebeke said.
He noted that the lack of comprehensive reporting makes it more difficult for fiscal and monetary authorities to coordinate policy, as the true size of the government’s deficit is not fully reflected in official data.
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Ebeke said the federal government had begun taking corrective measures by revising and repealing recent budget laws to accommodate previously excluded spending, but stressed that updated implementation reports were still needed to provide a complete picture.
He also underscored the importance of greater transparency, warning that off-budget spending could weaken accountability by limiting scrutiny of procurement processes and public expenditure.
Despite the concerns, the IMF acknowledged Nigeria’s recent economic reforms in its latest Article IV consultation, saying the measures had strengthened macroeconomic stability and improved investor confidence.
The Fund, however, cautioned that the benefits of the reforms had yet to reach many Nigerians and warned that global developments, including the conflict in the Middle East, could threaten the country’s economic outlook.